JMP Securities has reaffirmed its “market outperform” rating for Roku (NASDAQ: ROKU), maintaining a price target of $110.00 per share. This announcement was made in a report released on Monday, signaling confidence in the company’s growth potential despite a challenging market environment.
On the same day, multiple research firms provided updates on Roku’s stock. Rosenblatt Securities raised its price objective from $75.00 to $101.00 while assigning a “neutral” rating. Pivotal Research increased its target from $100.00 to $120.00, giving it a “buy” rating. In contrast, UBS Group adjusted its price target from $72.00 to $95.00, also rating the stock as “neutral.” Additionally, Loop Capital upgraded Roku from a “hold” to a “buy” rating, increasing its price target from $80.00 to $100.00. Meanwhile, Evercore ISI lowered its price target from $105.00 to $80.00, maintaining an “in-line” rating.
Overall, analysts have a consensus rating of “moderate buy” for Roku, with an average target price of $98.96. The stock has received two “strong buy” ratings, eighteen “buy” ratings, seven “hold” ratings, and one “sell” rating from various investment analysts.
Latest Stock Performance and Earnings Report
Roku shares opened at $93.99 on Monday, reflecting a 0.2% decrease from the previous session. The company currently has a market capitalization of $13.85 billion, a price-to-earnings (P/E) ratio of -223.79, and a price-to-earnings-growth (PEG) ratio of 13.19. Roku’s beta stands at 2.05, indicating higher volatility compared to the market.
In its latest earnings report released on July 31, 2023, Roku reported earnings of $0.07 per share, surpassing analyst expectations of a loss of $0.16 per share. The company generated revenue of $1.11 billion, which was above the anticipated $1.07 billion. This represented a year-over-year revenue increase of 14.7%. Despite the positive earnings, Roku reported a negative net margin of 1.40% and a return on equity of -2.44%.
Looking ahead, Roku has set guidance for the third quarter of 2025 at an unspecified earnings per share (EPS). Analysts project a total EPS of -0.3 for the current fiscal year.
Insider Activity and Institutional Investments
In related news, insider trading activity has seen significant developments. Charles Collier, a company insider, sold 10,269 shares on August 22 at an average price of $95.00, totaling $975,555.00. Following this transaction, Collier’s ownership decreased to 200 shares, valued at $19,000.
On August 11, 2023, CEO Anthony J. Wood sold 25,000 shares at an average price of $82.42, amounting to $2,060,500.00. Post-sale, Wood retained 16,441 shares valued at approximately $1,355,067.22, reflecting a 60.33% reduction in his stake. Over the past ninety days, insiders have sold a total of 350,502 shares worth $31,665,946, with corporate insiders owning 13.98% of the company.
Recent activity among institutional investors has also been noteworthy. United Advisor Group LLC increased its stake in Roku by 0.9% in the fourth quarter, now holding 14,430 shares valued at $1,073,000. DekaBank Deutsche Girozentrale grew its position by 0.9%, owning 15,550 shares worth $1,369,000. Rakuten Securities Inc. saw a significant increase of 55.6% in its stake during the same period, holding 442 shares valued at approximately $39,000.
As of now, 86.30% of Roku’s stock is held by institutional investors, highlighting strong interest in the company from larger financial entities.
Roku operates a streaming platform that provides access to a variety of content, including television shows, movies, and sporting events. The company is structured into two segments: Platform and Devices, with the Platform segment encompassing digital advertising and streaming services distribution.